SME Times News Bureau | 09 Oct, 2019
The Indian equity market broke its six day losing streak on
Wednesday, shrugging off from tepid global markets. The Sensex surged 646
points while the Nifty closed above the 11,300 point mark.
Banking stocks gained the most on the exchanges. IndusInd Bank, State Bank of
India, ICICI Bank and HDFC Bank closed with strong gains ranging between 3 to 6
per cent. The Bank Nifty index jumped by 3.67 per cent.
The Sensex closed 645.97 points higher at 38,177.95 while the broader Nifty
settled at 11,313.30, or 186.90 points up as the government announced a 5 per
cent hike in dearness allowance (DA), that could boost festival demand.
"The gains came on the back of bargain hunting. Sentiments also turned
positive after the government on Wednesday hiked the dearness allowance (DA) by
5 per cent from 12 per cent to 17 per cent entailing an outgo of Rs 16,000
crore," said Deepak Jasani of HDFC Securities.
Meanwhile, Yes Bank settled 5.26 per cent lower at Rs 43.20 apeice after the
company said it was " not aware of the source", which resulted in
reports of stake acquisition by Microsoft. The bank added it is in the usual
and ordinary course of its business continues to explore various means of raising
Globally, most emerging market stocks were headed lower for a third day on
Wednesday, as the US and China showed little signs of resolving their trade
dispute ahead of a crucial round of negotiations.
Analysts further said that the result season, set to begin on Thursday will
dictate the market direction.